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Barriers to exit
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Obstacles that make it costly for a firm to exit a market. Barriers to exit intensify competition in a market because incumbent firms have little choice but to ‘stay and fight’. Examples of barriers to exit include the costs involved with the write-off of assets, redundancy payments, penalties for terminating contracts, and the loss of reputation and goodwill.
Reference: Oxford Press Dictonary of Economics, 5th edt.
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